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Thi sis on my watch list - results for first trading year due in March. I will buy in pre then as expect them to have traded well. the RNS stated that the figures were "encouraging". One to watch. If goes anywhere near 50p I will buy straight away.
mulledwine offers a useful take on your question below. In short - this isn't a quick mover imho. DPP is still very much in the investment period. As mulledwine highlights, profit isn't going to be forthcoming until the profits begin to settle and the initial outlay is returned. I'm holding but prob one to leave for a while and wait out.
Hi nice too see someone is at least a holder in dpp, my take is that the company is still really at a early stage, building ists pizza places in and around warsaw, the company have done really well so far as too having 12 places up and running, with an eye too around another being added before the end of the year, I may be wrong but no figures have been published too how the cash flow is going or wether the chain is successful, I guess that the business is fairly good as they continue too add more places to there chain, it will take a little time for the custome to build up, cash flow tooo establish itself, but I have been doing research into this, and in my humble opinion, it will take 12/18 months too really see significant results. the board must have faith as too what they are doing and I for one have invested in them, hopefully, business will boom, they can franchise the outlets and sit back too take profits from the ventures. Hope this helps but a target of £1 by the summer looks good to me, hopefully news will come soon on how they are doing, regards H.
Is any other DPP share holder worried about the mediocrity of the price? Is it one to sit on and wait?
CONT Yet as new share listings go, DPP is a pretty good bet: a proven franchise concept being introduced to one of Europe's fastest-growing economies, amenable to this kind of service. Inexpensive takeaway food mainly needs intelligent marketing and reliable delivery, and DPP looks to be off to a good start. Unless there is a pre-close update, say later January, to add any new information now there are 12 stores trading, the next statement will likely be mid-March prelims.
CONT Each outlet is said to need 12 months' operation to reach sales maturity, so it is going to be a while before DPP's accounts show just how cash generative they can be. In this context the target for 27 stores by end-2012 looks ambitious, to be self-funded, but it is early days to judge. There is no sign yet of any debt, but growing cash flow might support it. If the business continues to evolve to plan, what makes DPP interesting is exposure to a proven franchising concept "at the ground floor" compared with the well-established Domino's Pizza (DOM) UK/Ireland group. Its shares are down from an all-time high of 586p last January to about 400p, but even so the forward price-earnings multiple is about 19 times when annual growth in earnings per share is expected to slip from 27% in 2010 to 16% in 2011 and 12% in 2012. DOM has an excellent earnings and dividend growth record, with a prospective yield of about 3.5% - the kind of share to consider for capital protection rather than, say, being in cash/gilts. But for long-term growth, do you want to be with a group of well over 500 stores, or the same concept being launched in an economy sporting growth rates over 4%? Things haven't gone exactly to plan, mind. Store building costs and central costs have been higher than expected, and management changes meant a slower than planned roll-out in the first half. But these are typical start-up issues and overall the company has met its 2011 target. From September's outlook statement, (expected) soft trading during the summer was followed by "encouraging" sales with a further increase expected as cooler, wetter weather encouraged people to order food in. "We believe that the rapid roll-out of our stores in Warsaw this year and next is key to driving sales growth." Judging management is also a priority until the company establishes a track record. There are only three directors, the original executive chairman having died unexpectedly in early October 2010. The chief executive is another founder, previously international marketing director for Coffeeheaven International and with varied consumer brand marketing experience. While this appears to put a lot of emphasis on one man, the admission document details further management including a financial controller. A key matter going forward will be the quality of local managers it is possible to bring in as franchisees, to expand the group. Only the financial results will tell. So at this stage, DPP shares have to be rated highly speculative and a risk-averse stockmarket is likely to await more evidence of development and how finances will evolve.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. Can the proven international success story of Domino's Pizza be repeated in Poland? It is interesting to follow the AIM-listed shares in DP Poland (DPP) now they have halved to about 65p currently, back near where they started 2011 after floating in July 2010. Raising £6.5 million gross at 50p a share, the company established a market capitalisation near £10 million, so is very much a small cap. Yet with the exclusive master franchise for Domino's Pizza in Poland, and roll-out proceeding overall to plan, this is a share to watch in 2012. Opening the 11th and 12th stores in Warsaw has just met the company's target for 2011 and according to last September's interims "many other potential sites [are] under negotiation." In 2008, cafes, restaurants and takeaways in Poland were estimated a £6.5 billion business, and DPP believes the home food delivery market is worth about £286 million in gross sales. Euromonitor has projected the Polish pizza food service market to grow by 7% in 2011. There are four existing chains: Telepizza, Da Grasso, Pizza Hut and Pizza Dominium, which in mid-2010 had 107,170, 48 and 53 stores respectively. While this begins to have the appearance of a "me too" industry, only Telepizza is part home delivery/takeaway; the others are restaurants. One of the main reasons why Poles do not yet buy much take-away/home delivery pizza is quality and delivery service being seen as poor; however DPP is required to ensure the highest standards to meet regular audits by the international franchiser. Despite the European debt crisis, it may be worth recalling how PizzaExpress became a leading growth share out of the UK recession twenty years ago. Admittedly this was restaurants but it showed how pizza is able to thrive in difficult times, and a well-managed roll-out can translate into financial success. From the website www.dppoland.com, the directors aim to open at least 27 wholly-owned stores in and around Warsaw by the end of 2012. A national roll-out, which may include sub-franchising, aims to achieve some 65 stores by the end of 2014. While all this sounds exciting, realists may wonder how it relates to cash resources and what mix of (hopefully) self-funding from cash generation and debt/equity may be involved. By end-June the group had opened two stores while balance sheet cash ran down from £5.0 million to £3.7 million over the first six months of 2011. Only about £0.5 million, however, was evidenced for investing activities, from the cash-flow statement, and the income statement cites pre-opening expenses under £34,000.
DPP state that stores are being opened as planned, managers have completed training, new menus are attracting interest & lots more store openings are in the pipeline etc etc. I got in at 55p & am holding for the future, more than likely adding at 65p downwards unless i read not to, as it should be a good long term growth investment :D
i have a few shares here and watched it drop from 120, ouch can any one tell me were it is going to drop to ! or when more info is due, its looking grim !!!!!!
Rather surprisingly Polish eating habits are not an area of my expertise, although I imagine they like a good pizza. This may be just as well for DP Poland, the owner of Domino's rights in the country. The charting message is that we are waiting on a weekly close above recent 90p resistance in order to raise the prospect of a retest of the year's best levels at 110p over the next 4-6 weeks. So reckons Zak Mir
Hi, yes there is someone hear !! Yes I value ths share as a great little investment, bought in early 60s some moons ago, but as with the dominos you now and love in the uk, it took a while for the momentium to get going with shops opening, company finding its feet as it was, but hey look at them now, I can see exactly the same with this one, I believe poland is a great place to open a chain of pizza resturants as I know the chain caters with local ingrediants sausage/fresh peppers etc. Point I am trying too make is until we get some sort of sale figures the market will not commit to investing/buying, the company has a agressive strategy in a roll out of shops, give this 18/24 months and I forecast a £2 + share price, but again only my opinion, things are bad atm due too the bad debt thing, but as with everything patients is the key. hope I have not bored you too much !!!!!!!!! Herman
Does anybody follow this share , I see seldom posters, this share should be moving up with a shop open per month moving to two per month over six months. At that point any one have an opinion on price.at the end.
RNS Operations Update - store roll-out gathers pace http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=10892178
The only information that i've read, was in shares magazine - just before DPP listed on the market. Shares magazine said to " get in at the start " - but did not state any price to sell at. If the company grows anything like that seen in the UK - then it should do very well over the coming years :D Then again, this is an investment - so who knows !!! Good luck to all investors.
i am starting to hear so much about DPP being a good investment opportunity. Does anyone know where the share price is projected to move to?
Lol same market cap as shares in circulation! :)
First Store Opens Today First store opens DP Poland is delighted to announce that its first Domino's Pizza store will open its doors for business today, 28 February 2011. The store is located in the affluent Mokotów district of Warsaw, an area south of the city centre, with a high density of apartments and a vibrant business district. The store opening plan remains on track with a total of 12 Domino's Pizza stores scheduled to be opened in Warsaw by the end of 2011 and a further 15 in 2012. A good number of store leaseholds and initial contracts have already been signed, and design and construction plans are well advanced. The first 8 store managers recently returned from training at Domino's Pizza in the USA. A commissary has been commissioned in Warsaw with an initial capacity to supply at least 25 Domino's Pizza stores with fresh dough, ingredients and all other menu items. Peter Shaw, Chief Executive of DP Poland, commented: "This first store is world class and the quality of the pizzas is outstanding. We have now taken our first step in realising our vision to transform the pizza delivery market in Poland, Europe's sixth largest economy. I would like to pay tribute to the incredible energy and professionalism of our team that has made this first store open on time and to budget."
is near to completion and on target for opening at the end of February 2011, with a number of other store leases signed up or in advanced stages of lease negotiation. DP Polska S.A., the Company’s wholly owned subsidiary through which the master franchise will be operated, has secured a number of high calibre personnel to join the team in Poland, including appointments in marketing, operations and HR. The first eight store managers have been hired ready for training in the US in the New Year.
it is unbeleivable that after all this time and all that has unfortunately happened no one from the company has bothered to put investors minds at rest. I will be selling shortly as I feel we are wasting time with this investment and without the driving force we are struggling
cant make sense of that. It was back in 2003 and money week website said it has no pizza station in poland yet!
looks like a good long term investment. however did some quick investigation and came up with this: http://findarticles.com/p/articles/mi_m0DQA/is_1999_July_1/ai_55182552/ does this mean they failed first time around??
Compare the Mkt Cap of less than £14m with Domino's Pizza in the UK at £672m. But DPP haven't actually opened a single shop yet! Will the SP drift down in the coming weeks with no news? Or will it be over £1? Perhaps I should hedge my bets by investing half my funds now and averaging down if it drops below 50p?
Looks like this is one for long term, going to take a while to get going, looks like it could be a winner long term. No doubt the MM's will be hovering around anytime soon.........
Shares magazine advised to get in at day one on this one - if this helps at all ?